TCI Express (TCIEXP) Q2 24/25 earnings summary

Executive summary

• Achieved total income of Rs. 313.94 crore in Q2 FY25, up 6% sequentially but down 2% year-on-year, with stable margins despite cost pressures and weak demand in manufacturing and automotive sectors.

• Rail Express and multimodal services expanded, contributing positively to margins; automation at Pune and Gurugram sorting centers reduced turnaround time by up to 40%.

• Interim dividend of Rs. 3 per share declared for FY25, reflecting confidence in cash generation and financial stability.

• Recognized with Iconic Brand of India 2024 and Rajasthan Business Award; paid-up equity increased due to ESOP exercise.

• Statutory auditors issued limited review reports with no material misstatements identified.

Financial highlights

• Q2 FY25 income at Rs. 313.94 crore, up from Rs. 295.26 crore in Q1 FY25 and down from Rs. 321.75 crore in Q2 FY24; sequential revenue growth of 6%.

• EBITDA for Q2 FY25 was Rs. 40.5 crore (12.9% margin), with PAT at Rs. 26.32 crore (8.4% margin), up from Rs. 23.11 crore in Q1 FY25.

• H1 FY25 total income Rs. 610 crore, EBITDA Rs. 76 crore, PAT Rs. 49.44 crore.

• Cash flow from operations for H1 FY25 was Rs. 22.05 crore; cash and cash equivalents increased to Rs. 14.11 crore as of September 30, 2024.

• Basic EPS for Q2 FY25: Rs. 6.86, compared to Rs. 6.04 in Q1 FY25 and Rs. 9.27 in Q2 FY24.

Outlook and guidance

• Anticipates demand recovery in H2 FY25 with festive season; expects mid-single-digit volume growth in H2.

• Long-term volume growth guidance of 13%-15% once macro conditions normalize; expects 7%-8% volume growth from existing customers, rest from new additions.

• CapEx guidance: Rs. 40-50 crore for FY25, Rs. 100-125 crore annually for FY26 and FY27, focused on sorting center automation and land acquisition.

• Plans to increase multimodal express services' revenue contribution to 20%-22% over 2-3 years.

• Strategic focus on network expansion, operational efficiency, and customer-centric growth.